News Summary
Saudi Arabian Railways has announced a tender for a $192 million railway project in Dammam’s Second Industrial City. This initiative aims to enhance freight transportation infrastructure by constructing a new freight yard and connecting it to the existing Dammam-Riyadh railway. The project plans to conclude in three years, following tender submissions by May 29. This step underscores SAR’s commitment to improving freight capacity and supporting industrial production in the region.
Saudi Arabian Railways Unveils Tender for Major Railway Project in Dammam
Saudi Arabian Railways (SAR) has launched a significant new initiative with the announcement of a tender for the construction of a new railway line in Dammam’s Second Industrial City. The estimated value of this ambitious project is approximately SR720 million, equivalent to around $192 million.
The key aspects of this project include the creation of a new freight yard and a dedicated freight line that will seamlessly connect Dammam’s Second Industrial City with the existing Dammam-Riyadh railway. The tender notice was made public in April, with all interested bidders required to submit their proposals by 29 May. SAR has outlined a three-year timeline for the implementation of the project.
Enhancing Freight Capacity through Strategic Projects
In 2023, SAR announced two noteworthy projects that focus on enhancing its freight capacity. One of these initiatives involves a substantial investment of SR4.2 billion, or about $1.1 billion, aimed at adding a second track along the North Train Freight Line and constructing three new freight yards. The North Train Freight Line stretches over an impressive 1,550 kilometers and connects phosphate and bauxite mines located in northern Saudi Arabia to the Al-Baithah junction.
The expansion of the North Train is expected to significantly enhance its cargo-carrying capacity and provide vital support for increased industrial production in the region. This new freight line, alongside the construction of freight yards, is projected to take approximately four years to complete.
Local Production Initiatives and Future Projects
As part of its ongoing growth strategy, SAR is exploring opportunities to boost the local production of railway materials and equipment. This includes plans to establish a new cement sleeper manufacturing facility, which would play a crucial role in supporting future railway projects. Additionally, SAR is advancing with its ambitious Saudi Landbridge project, aimed at enhancing the national rail infrastructure.
Earlier in the month, a tender for the lead design consultancy related to the Saudi Landbridge project was issued. Valued at an estimated $7 billion, this large-scale initiative encompasses over 1,500 kilometers of new railway track, with the key component being a 900-kilometer railway connecting Riyadh and Jeddah. This direct link will notably facilitate freight access to the capital from King Abdullah Port on the Red Sea.
Public-Private Partnership Projects Under Vision 2030
In line with Saudi Arabia’s Vision 2030 agenda, several highly anticipated Public-Private Partnership (PPP) projects have been announced. Notably, a major development is planned in Makkah, which will focus on creating a mixed-use healthcare and commercial zone on a 219,416-square meter government plot. The deadline for submissions for this project’s Request for Qualifications (RFQs) is set for 27 July 2025.
Furthermore, the anticipated Dammam King Fahd Suburb Boulevard project aims to transform 1,000,000 square meters of government land into a dynamic mixed-use destination featuring parks, retail, hospitality, and office spaces. Expression of Interest (EOI) submissions for this initiative are due by 16 July 2025. Both PPP projects include revenue-sharing agreements and will see full asset handover to the public sector following a 30-year concession period.
Progress on Sports Infrastructure
In addition to the railway advancements, significant progress is being made on the Aramco Stadium in Dammam, which is expected to be completed by 2026 in time for the AFC Asian Cup, with potential use for the 2034 FIFA World Cup. The stadium, covering 800,000 square meters and designed to accommodate 47,000 fans, features six buildings inspired by a whirlpool concept created by Populus. The construction is being handled by a joint venture between the Saudi-based firm Al-Bawani and Belgian contractor BESIX.
Furthermore, the Saudi Arabian Sports Ministry has earmarked close to $3 billion for the development of new sports facilities and upgrades over the next five years, demonstrating the kingdom’s commitment to enhancing its infrastructure across various sectors.
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Additional Resources
- MEED: SAR Tenders for Dammam Industrial City Railway Connection
- Google Search: Dammam industrial construction market
- Arab News: Corporate and Sponsored Content
- Zawya: EOI for Logistics Zone PPP Project in Dammam
- Football Ground Guide: New Saudi Stadium Bids in Dammam
